The prospect of the world’s strongest ever El Niño cycle has a growing number of money managers racing to prepare their portfolios for the disruption they say is coming.
The climate phenomenon associated with warming across the equatorial Pacific Ocean is fanning crop-damaging droughts and floods. Food commodity prices are rising, and economists are revising estimates for inflation and deficits. These impacts are now feeding into markets already stressed by high debt levels and rising borrowing costs.
